Podcasts
1st December 2010
Episode 6 - Episode 6 - Don't forget your change!
Hi and welcome to The Business Plan, brought to you by LeasePlan. I’m Jackie Allender. In this week’s podcast, another aspect of e-business – enterprise resource planning or ERP.
ERP systems are designed to replace multiple business software programs running in your business with a single system that runs “best practice” solutions. For example, instead of your accounting, sales and dispatch departments all running their own systems, an ERP system would provide accounting, sales and dispatch processes all in one. Theoretically, it’s more cost-effective, because you support a single IT system, it includes best practice processes and can automate a number of generic tasks and it provides integrated access to management information.
Software vendors will tell you that ERP software is the best thing since sliced bread, that it will transform your business and unlock efficiencies across the organisation. Are they right? Well, yes and no.
Like any type of software, ERP solutions – which basically provide a single platform to handle all the business processes – are only as good as the people who use them. Yes, they can transform your business and unlock efficiencies. But no, the software itself doesn’t automatically do the job for you. It takes considerable effort to get an ERP implementation right.
A recent survey by independent American ERP consultants Panorama, found that 65% of ERP solutions came in over budget and a similar percentage were overdue.
Panorama maintains that successful ERP implementations are less about technology and more about people and processes. Other experts agree.
Why is that?
Well, when you put in a new software system it’s going to change the way people go about their work. The aim will be to make processes better – but that usually means changing them. And when you change the way things are done, people have to change – and people are notoriously averse to change, even when it’s for the better. And this is particularly true for ERP, which usually touches every aspect of an organisation’s work processes.
Change management covers both training and communications, all focussed on making the transition to the new system as easy as possible. Training of course is vital, but employees also need clear communication so they know the status of the project, how it will impact on them, when they will be trained and what other help will be available to them in the transition period and what to expect during the initial period after the software has gone ‘live’.
As well, there’s a need to think about the communication needs of other stakeholders – from the executive team through to customers and suppliers.
The message is clear: if you implement an ERP system, don’t forget your change!
Well, that’s it for this week. I hope you’ve enjoyed this edition of The Business Plan. Don’t forget, if you have something you want to say about this issue, go to the LeasePlan website at leaseplan dot com dot au and follow the links to ‘The Business Plan’, where you’ll find a transcript of this podcast, as well as a section where you can make a comment. Next week – is the future cloudy? I’m Jackie Allender, thanks for listening.
LINKS RELATED TO THIS STORY
http://panorama-consulting.com/resource-center/erp-podcasts/
http://panorama-consulting.com/erp-success-factor-the-importance-of-communications/
http://www.projectperfect.com.au/info_erp_imp.php
http://panorama-consulting.com/category/consulting-services/change-management/
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